Frasers Centrepoint Trust - Business updates for the Third quarter ended 30 June 2021 - Frasers Property
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Frasers Centrepoint Trust
Business updates for the Third quarter ended 30 June 2021
22 July 2021
• Certain statements in this Presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statement and financial information involve known
and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of FCT or the Manager, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by such forward-looking statements and financial information. Such forward-looking statements and financial information are based
on numerous assumptions regarding the Manager’s present and future business strategies and the environment in which FCT or the Manager will operate in the future. Because these statements and
financial information reflect the Manager’s current views concerning future events, these statements and financial information necessarily involve risks, uncertainties and assumptions. Actual future
performance could differ materially from these forward-looking statements and financial information.
• The Manager expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement or financial information contained in this Presentation to
reflect any change in the Manager’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement or information is based, subject to compliance
with all applicable laws and regulations and/or the rules of the SGX-ST and/or any other regulatory or supervisory body or agency. The value of Units in FCT and the income derived from them may
fall as well as rise. The Units in FCT are not obligations of, deposits in, or guaranteed by, the Manager or any of their affiliates. An investment in the Units in FCT is subject to investment risks,
including the possible loss of the principal amount invested. Unitholders of FCT should note that they have no right to request the Manager to redeem their Units while the Units are listed. It is intended
that Unitholders of FCT may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.
• This Presentation contains certain information with respect to the trade sectors of FCT’s tenants. The Manager has determined the trade sectors in which FCT’s tenants are primarily involved based
on the Manager’s general understanding of the business activities conducted by such tenants. The Manager’s knowledge of the business activities of FCT’s tenants is necessarily limited and such
tenants may conduct business activities that are in addition to, or different from, those shown herein.
• This Presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for any securities of FCT. The past performance of FCT and the Manager is not
necessarily indicative of the future performance of FCT and the Manager.
• This Presentation includes market and industry data and forecast that have been obtained from internal survey, reports and studies, where appropriate, as well as market research, publicly available
information and industry publications. Industry publications, surveys and forecasts generally state that the information they contain has been obtained from sources believed to be reliable, but there
can be no assurance as to the accuracy or completeness of such included information. While the Manager has taken reasonable steps to ensure that the information is extracted accurately and in its
proper context, the Manager has not independently verified any of the data from third party sources or ascertained the underlying economic assumptions relied upon therein.
• This advertisement has not been reviewed by the Monetary Authority of Singapore.
2
3Q21 Highlights
Northpoint City, Singapore
◆ FCT retail portfolio occupancy stable at 96.4%1 ◆ Renewed substantial expiring leases due in
◆ Shopper traffic between April and June 2021 fell FY2021, with only 8% remaining to renew in 4Q21
to around 60% of pre-COVID level, due to ◆ Gearing level at 33.9%, strong financial position
implementation of Phase 2 (HA) measures with ample debt headroom to support future growth
◆ Portfolio tenants’ sales nudged back to around ◆ Completed the divestment of YewTee Point on 28
pre-COVID levels despite tightened measures May 2021
during Phase 2 (HA), performance was
underpinned by the resilience of FCT’s portfolio of
suburban malls
1. Including committed leases
4
Resilient performance and sustained recovery above general market
Jump in y-o-y variance in April and May mainly due to low base effect
YoY Change
Retail Sales value (ex auto)1 versus FCT portfolio tenants' sales2
Retail sales value FCT Portfolio tenants' sales
150.0%
Jump in year-on-year 115.2%
variance mainly due to low
100.0% base effect during the
y-o-y
Circuit Breaker period in 61.2%
change
50.0% the previous year
0.0%
-50.0%
-100.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
2020 2021
Retail sales value -0.6% -9.6% -9.9% -31.6% -44.2% -23.7% -7.9% -8.6% -12.6% -11.2% -2.7% -4.3% -8.7% 7.1% 4.1% 38.0% 61.2%
FCT Portfolio tenants' sales -0.9% -3.1% -6.0% -45.2% -58.7% -30.4% 0.1% -1.0% -4.8% -1.4% 2.9% -0.1% 0.7% 12.4% 6.1% 81.7% 115.2%
1. Retail Sales value (ex auto) from Singapore Department of Statistics, 5 July 2021. See Appendix for table of values.
2. FCT’s portfolio tenants’ sales adjusted to exclude Bedok Point, Anchorpoint and YewTee Point, which have been divested.
5
MTI: maintains 2021 GDP growth forecast at 4.0 to 6.0%
Chart 1: Prime retail rents by submarkets (CBRE)
S$ per square
The Ministry of Trade and Industry (MTI) maintains foot /month
Orchard Prime Suburban Prime
Singapore’s GDP growth forecast for 2021 at “4.0
40.00 37.85 34.55
to 6.0 per cent”, in view of the heightened
35.00
uncertainties in the economic environment,
characterised by both upside and downside risks, 30.00
especially arising from the COVID-19 pandemic – 25.00
29.50 29.80
MTI, 25 May 2021 20.00
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Suburban retail rents rose in Q2 2021 (Apr – 2018 2019 2020 2021
June). For Q2 2021, Orchard Road prime retail
rent declined 1.0% q-o-q, while suburban prime Table 2: Estimated Gross New Supply*
retail rent rose 1.0% q-o-q (Chart 1)1
Year Estimated NLA (sq. ft)*
Singapore’s future retail supply remains low.
H2 2021 0.38 million sq ft
The average of the new supply between 2022
and 2024 is less than one per cent of the 2022 0.27 million sq ft
current private retail stock2 2023 0.41 million sq ft
2024 0.68 million sq ft
1. Source: CBRE Singapore Real Estate Market Update, Q2 2021 *excludes projects with a NLA of less than 2 0,000 sq. ft.
2. Total stock of private retail space as at 1Q 2021 was 49.363 million sq ft. Source: CBRE
6
Financial position
Tampines 1, Singapore
30 Jun 2021 30 Jun 2020
Debt maturity profile as at 30 June 2021
Average debt maturity 2.8 years 2.3 years
Gearing level1 33.9% 35.0% $518.0m $522.0m
(27.8% of total (28.0% of total
YTD Interest Cover (times) 5.2 times 4.7 times borrowing) borrowing)
% of debt hedged to fixed rate 59% 60% 70.0
$391.0m
(21.0% of total
YTD Avg cost of debt (all-in) 2.2% 2.5% borrowing)
Credit rating (S&P) BBB/Stable
Credit rating (Moody’s) Baa2/Stable 399.0
$210.5m 200.0
(11.3% of total
Type of borrowings Aggregate amount borrowing) 452.0 $120.0m
■ MTN and EMTN $300.0 million (16.1%) 30.0 (6.4% of total $104.0m
■ Unsecured bank borrowings $534.0 million (28.6%) borrowing) (5.5% of total
borrowing)
■ Secured bank borrowings $1,031.5 million (55.3%) 180.5 191.0
Total borrowings $1,865.5 million (100.0%) 119.0 120.0 104.0
Undrawn RCFs $773 million
-
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
Any discrepancy between individual amount and the aggregate is due to rounding.
1. In accordance with the Property Funds Appendix, the gearing ratio included FCT’s 40% proportionate share of deposited property value and borrowing in SST
8
Portfolio update
Waterway Point
Waterway Point, Singapore
• Portfolio maintained at a healthy occupancy level despite COVID-19 disruptions
• Quality suburban retail spaces remain in demand by retailers
• Mall performance driven by proactive leasing strategy which focuses on both tenant retention and refresh
of retail offering
1. Include committed leases. 31 March 2021 portfolio occupancy adjusted to exclude YewTee Point which has been divested on 28 May 2021
10FCT Portfolio Shopper Traffic Trend FCT Portfolio Tenants' Sales Trend
(as percentage of FY2019 level (pre-COVID)) (as percentage of FY2019 level (pre-COVID))
Pre-COVID average 2020 2021
Pre-COVID average 2020 2021
140% 140%
Affected by Phase 2 (HA)
tightened measures
120% Affected by Phase 2 (HA) 120%
tightened measures 94%
100% 100%
88%
81%
80% 80%
65%
55%
60% 53% 60%
40% 40%
20% 20%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
11◆ WALE as at 30 June 2021 stands at 1.62 years by NLA (2Q21: 1.54 years) and 1.63 years by GRI (2Q21: 1.53 years)
Lease expiry profile as % of Total GRI
■ Expiries as at 30 September 2020
■ Expiries as at 30 June 2021
Lease expiry1,2,3 as at FY2026
FY2021 FY2022 FY2023 FY2024 FY2025 Total
30 June 2021 and Beyond
Number of leases expiring 130 542 371 383 24 6 1,456
Leased area expiring (sq ft) 177,168 798,461 516,966 488,784 55,808 73,828 2,111,015
Expiries as % of total leased
8.4% 37.8% 24.5% 23.2% 2.6% 3.5% 100.0%
area
Expiries as % of GRI 8.2% 35.2% 26.2% 26.1% 2.1% 2.2% 100.0%
1. Calculations exclude vacant floor area
2. Based on committed leases for expiries as at 30 June 2021. Excludes Central Plaza (Office)
3. Following the completion of Anchorpoint’s and Yew Tee Point’s divestment, calculation of lease expiry profile and WALE for both periods stated above have been adjusted accordingly 12Lease Expiries1,2 in FY2021 Number of leases Lease area expiring as % of leased as % of total GRI
(As at 30 June 2021) expiring (sq ft) area of property of property
Causeway Point 21 47,032 11.4% 10.7%
Northpoint City North Wing3 4 11,862 5.2% 2.6%
Changi City Point 7 6,977 3.6% 2.1%
Waterway Point 6 9,777 2.8% 2.9%
Tampines 1 12 9,380 3.5% 5.4%
Tiong Bahru Plaza 16 13,540 6.5% 7.4%
Century Square 40 35,748 19.3% 24.2%
Hougang Mall 12 32,126 21.9% 15.8%
Whitesands 12 10,726 8.7% 10.3%
FCT Retail Portfolio 130 177,168 8.4% 8.2%
Central Plaza 0 0 0.0% 0.0%
FCT Portfolio 130 177,168 7.9% 8.0%
1. Calculations exclude vacant floor area
2. Based on committed leases for expiries as at 30 June 2021
3. Includes Yishun 10 Retail Podium
13New Additions
At Tea – Popular Taiwanese bubble tea chain’s first outlet in SG at Tiong Bahru Plaza Gram Café – Famous Osaka pancakes café opened at Waterway Point
Playdress – One of SG’s leading omnichannel fashion brands at Tampines 1 Dim Sum Place – Authentic halal-certified Cantonese cuisine at Changi City Point
Note: The above reflects only a portion of the tenants that have commenced trading or are expected to commence trading in FY2021 14New Additions
Total committed spaces represent over 75% of NLA vacated by H&M
*
Level 1 Level 2
Note: Above illustrations are not to scale
* Toys”R”Us to relocate from its current B1 unit to Level 2 15Summary
FCT remained resilient with strong financial position
FCT portfolio remained resilient in 3Q21, while its financial position remained strong with gearing
at 33.9%
FCT’s portfolio operations remained steady with occupancy stable at 96.4% and only 8% of lease
expiries (by GRI) remaining to be renewed in 4Q21
Both shopper traffic and tenants’ sales during the April 2021 to June 2021 period were impacted
by the implementation of Phase 2 (HA) measures
The Manager will explore AEI opportunities within the portfolio for organic growth and look out for
inorganic growth opportunities for FCT
17Appendix
19◆ 3Q21: Third Quarter 2021 ended 30 June 2021 ◆ NPI: Net Property Income
◆ 3Q20: Third quarter 2020 ended 30 June 2020 ◆ NTA: Net Tangible Value
◆ 4Q21: Fourth quarter 2021 ending 30 September 2021 ◆ Phase 2 (HA): Phase 2 (Heightened Alert)
◆ AEI: Asset Enhancement Initiative ◆ Phase 3 (HA): Phase 3 (Heightened Alert)
◆ COVID-19: Coronavirus pandemic ◆ q-o-q: quarter-on-quarter, refers to the comparison with the previous
quarter
◆ DPU: Distribution per Unit
◆ RCF: Revolving credit facility
◆ EMTN: Medium Term Notes under FCT’s $3 billion Multicurrency Debt
Issuance Programme ◆ REIT: Real Estate Investment Trust
◆ Essential Services: The groupings of essential and non-essential services ◆ RSI: Retail Sales Index, published by the Department of Statistics
based on Ministry of Trade and Industry’s press release on 21 April 2020 ◆ RSV: Retail Sales Value, published by the Department of Statistics
◆ F&B: Food and Beverage ◆ S&P: Standard and Poor’s (credit rating agency)
◆ FCT: Frasers Centrepoint Trust ◆ Square Feet: sq ft
◆ FCAM: Frasers Centrepoint Asset Management Ltd., the manager of FCT ◆ SST: Sapphire Star Trust, which holds Waterway Point; it is a joint venture
◆ FPL: Frasers Property Limited, the sponsor of FCT of FCT
◆ GRI: Gross Rental Income ◆ WALE: Weighted Average Lease Expiry
◆ Moody’s: Moody’s Investors Service (credit rating agency) ◆ y-o-y: year-on-year, refers to the comparison with the same period in the
previous year
◆ MTN: Medium Term Notes under FCT’s $1 billion multi-currency MTN
program ◆ YTD: year-to-date
◆ NAV: Net Asset Value
◆ NLA: Net Lettable Area◆ Among the top-10 largest Singapore REITs (SREITs) by market capitalisation1
◆ Included in key indices: FTSE EPRA/NAREIT Global Real Estate Index (Global Developed Index);
FTSE ST REIT Index; MSCI Singapore Small Cap Index
◆ Pure play on Singapore suburban retail sector
◆ Acquisition of the AsiaRetail Fund portfolio in 2020 propelled FCT to become one of Singapore’s
largest suburban retail landlords
◆ Current portfolio comprises nine quality retail malls focused on providing Essential Services to
mainly domestic catchment
◆ Suburban malls were among the first to benefit from recovery as Singapore exited the Circuit
Breaker in early June 2020 – FCT saw its tenants’ sales recovering to pre-COVID levels soon after
Phase 1 and Phase 2 reopening
1. Based on FCT’s closing price of $2.43 on 30 June 2021, market capitalisation was approximately $4.13 billion
21◆ Current Singapore retail portfolio
comprises 9 quality suburban retail
malls
◆ Portfolio net lettable area of
approximately 2.2 million square feet
Causeway Point (NLA: 419,626 sq ft) Northpoint City NW* (NLA: 229,870 sq ft) Waterway Point (NLA: 388,241 sq ft)
with more than 1,400 leases
◆ Total assets under management of
approximately $6.2 billion
Tampines 1 (NLA: 268,504 sq ft) Century Square (NLA: 211,283 sq ft) Changi City Point (NLA: 208,399 sq ft)
Net lettable area (NLA) shown for the malls includes area
for the Community/Sports Facilities Scheme (CSFS). NLA
as at 30 June 2021 Tiong Bahru Plaza (NLA: 214,708 sq ft) White Sands (NLA: 150,375 sq ft) Hougang Mall (NLA: 165,615 sq ft)
22Large catchment
Our portfolio serves a combined 2.6 million1
catchment population
Connection to public transport
All our malls are well-located on or next to MRT
stations and enjoy healthy occupancy and high
recurring shopper traffic
Sustainable relevance
Proximity to homes and transport amenities makes
our malls ideal “last-mile” fulfilment hubs, especially
with trend of “work-from-home”
1. Aggregate catchment population within 3km of each property in the portfolio. Population in overlapping areas are only counted once. Source: Cistri, 2021
23Portfolio overview
Proportion of Nett Lettable Area allocated To FCT Retail Portfolio3
Essential Services1 (%) Essential Services1 by Gross Rental Income
• Suburban retail malls generally have higher proportion of NLA
allocated to Essential Services than central malls
FCT Retail Portfolio3:
45.2%
Suburban
40.0% 60.0%
Retail Malls 2
2
Central Malls 20.0 - 30.0% 70.0 – 80.0%
% of Essential Services % of Non Essential Services
1. The groupings of essential and non-essential services are based on Ministry of Trade and Industry’s press release on 21 April 2020. Note that the individual product group may not align perfectly to the announced Essential Services
2. Source: Cistri
3. Based on the FCT’s current retail portfolio
4. Not all trades in the Beauty & Health trades are included, only certain trades such as pharmacy are included
24Tenants As % of total NLA7 As % of total GRI7
1 NTUC Fairprice1 4.3% 3.3%
2
2 Dairy Farm Group 3.0% 2.8%
3 Kopitiam3 3.1% 2.7%
4
4 Breadtalk Group 1.8% 2.3%
5
5 Metro 2.6% 1.7%
6 Mcdonald’s 0.9% 1.6%
7 Courts 1.5% 1.4%
8 OCBC 0.7% 1.3%
9 Yum!6 0.9% 1.3%
10 UOB 0.6% 1.2%
Total for Top 10 19.5% 19.5%
1. Includes NTUC FairPrice, FairPrice Finest and Unity Pharmacy
2. Includes Cold Storage supermarkets, Guardian Pharmacy & 7-Eleven
3. Operator of Kopitiam food courts, includes Kopitiam, Bagus, Mei Shi Mei Ke and Food Tempo
4. Includes Food Republic, Breadtalk, Toast Box, The Foodmarket and Din Tai Fung
5. Includes leases for Metro Department Store & Clinique Service Centre
6. Operates KFC and Pizza Hut outlets
7. Total may not add up due to rounding differences
25Trade Classifications As % of total NLA1 As % of total GRI1
Food & Beverage 28.8% 37.3%
Beauty & Healthcare 10.4% 14.4%
Fashion & Accessories 11.9% 12.5%
Sundry & Services 5.8% 8.7%
Supermarket & Grocers 8.1% 5.5%
Homeware & Furnishing 4.6% 3.2%
Information & Technology 2.7% 3.1%
Leisure & Entertainment 6.3% 2.9%
Books, Music, Arts & Craft, Hobbies 3.5% 2.5%
Electrical & Electronics 3.1% 2.4%
Jewellery & Watches 0.7% 2.1%
Education 3.6% 2.1%
Sports Apparel & Equipment 2.4% 1.7%
Department Store 2.7% 1.7%
Vacant 5.3% 0.0%
FCT Retail Portfolio 100.0% 100.0%
1. Total may not add up due to rounding differences 26Retail sales value
Retail Sales Value (excluding auto) in S$ million y-o-y change
Month / Year 2019 2020 2021 2020/2019 2021/2020
Jan 3,543 3,523 3,215 -0.6% -8.7%
Feb 2,894 2,615 2,801 -9.6% 7.1%
Mar 3,089 2,784 2,897 -9.9% 4.1%
Apr 2,936 2,008 2,772 -31.6% 38.0%
May 3,126 1,744 2,811 -44.2% 61.2%
Jun 3,003 2,291 -23.7%
Jul 3,071 2,828 -7.9%
Aug 3,154 2,883 -8.6%
Sep 3,054 2,669 -12.6%
Oct 3,136 2,784 -11.2%
Nov 3,226 3,139 -2.7%
Dec 3,729 3,569 -4.3%
Source: https://www.singstat.gov.sg/find-data/search-by-theme/industry/services/latest-data
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